Ryan Kelly and I held a webinar on all things ‘running an agency’ yesterday, and this was one of the questions we didn’t get to.
IMO, (and putting aside commercial realities for a sec) it’s a hard YES from me.
Giving away your best ideas and top talent’s time for free diminishes their value.
A year or two ago, SI Partners’ ‘Ouch Factor’ report showed that agencies take from 3-32 months with a client to recoup the costs of a pitch (media and creative agencies respectively).
Now, given much of the time when we go in to pitch it’s competitive, unless there’s a sympathetic ear on the other side of the table this sort of stance can put you at a significant disadvantage. It’s just not that simple – ideology doesn’t pay the bills.
Some agencies I know will charge for an upfront project in order to put together a strategy, plan, or concept. Where you can make it work, I like this model, as it places a value other than ‘free’ on your time and expertise. Others push for efficiency in the pitch process so to try and reduce the cost. Some just have to grin and bear it.
I’d love to hear others’ thoughts on this one, as well as some people/businesses putting out good writing on the topic?
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